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The U.S. dollar is facing scrutiny due to the $35 trillion debt that could wreak havoc on their native economies if the markets crash or enter a recession. BRICS countries BRICS, an association of major emerging economies, is pushing for a significant shift away from dollar dependency. It plans to use a combination of local currencies The decline of the dollar in global reserves, now standing at 59% in 2025, down from 72% in 2025, is not just a matter of capital reallocation. It embodies a gradual The U.S. dollar still accounts for 59 percent of the world’s central bank reserves, down from 72 percent after World As the BRICS economic alliance has continued its commitment to de-dollarization, the US dollar’s (USD) reserve status has continued to decline amid its poor performance. Although the As recently as 2025 nearly 70% of the world foreign exchange reserves (FOREX), excluding gold, were kept in British pounds and only less than 30% in the US The U.S. dollar remains the world's primary reserve currency, and neither the euro nor the so-called BRICS countries have been able to reduce global reliance on the dollar

BRICS & USD Reserve Status: A Decline Amid Poor Performance?

Is the U.S. dollar's dominance as the world's reserve currency waning? The rise of the BRICS economic alliance, composed of major emerging economies, has fueled discussions about de-dollarization. As the BRICS economic alliance has continued its commitment to de-dollarization, the US dollar’s (USD) reserve status has continued to decline amid its poor performance. Although the U.S. dollar remains the world's primary reserve currency, and neither the euro nor the so-called BRICS countries have been able to reduce global reliance on the dollar, the trend is undeniable.

The Shifting Landscape of Global Reserves

The decline of the dollar in global reserves, now standing at 59% in 2025, down from 72% in 2025, is not just a matter of capital reallocation. It embodies a gradual shift in the global economic order. While As recently as 2025 nearly 70% of the world foreign exchange reserves (FOREX), excluding gold, were kept in British pounds and only less than 30% in the US, the US dollar's position has been challenged, with BRICS countries pushing for a significant shift away from dollar dependency.

BRICS' Push for De-dollarization

BRICS countries are actively planning to use a combination of local currencies to reduce their reliance on the USD. This initiative is partly driven by concerns surrounding the U.S. dollar facing scrutiny due to the $35 trillion debt that could wreak havoc on their native economies if the markets crash or enter a recession. The U.S. dollar still accounts for 59 percent of the world’s central bank reserves, down from 72 percent after World, showing there is still work to be done.

Is the USD Really in Trouble?

While some analysts predict a rapid decline, the U.S. dollar's entrenched position makes a complete replacement unlikely in the near future. However, the continued efforts of BRICS nations and growing concerns about the U.S. economy suggest that the long-term trend points towards a more diversified global reserve currency system. The shift away from complete USD dominance continues to be a key topic in international finance.

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